Norman, OK Cap Rate: 4.77% — Rental Property Analysis
Norman is a budget-friendly market in the South with a smaller market with 130,000 residents. At a 4.77% estimated cap rate, this is a moderate market where rents of $1,360/mo lag behind home prices. With a median home price of $240,000 and steady population growth supports long-term rental demand, Norman offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
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Moderate — source deals carefully
Based on $240,000 median price and $1,360/mo median rent
Est. Cap Rate
4.77%
1% Rule
0.57%
Fails
GRM
14.7x
Price / Income
4.6x
Market Data
Median Home Price$240,000
Median Monthly Rent$1,360
Property Tax Rate0.86%
Population130,000
Population Growth1% / yr
Median Household Income$52,400
Vacancy Rate5.5%
Annual Appreciation2.5%
2026 Market Update: Norman
Norman's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $240,000, the $1,360/mo rent produces only $953/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($48K at 7%) would result in approximately $-324/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
The 14.7x gross rent multiplier and 5.5% vacancy rate position Norman as a balanced market. With annual appreciation at 2.5%, total returns (cash flow + equity growth) run approximately 7.3% before financing leverage.
Cap Rate Calculator — Norman
Pre-filled with Norman medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.86% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.94%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,458
net operating income
Gross Rent Multiplier
14.7x
Good (<15)
1% Rule
0.57%
✗ Fails
Monthly Cash Flow
$788
before debt service
Annual Breakdown
Gross Rental Income$16,320
Less Vacancy−$898
Effective Income$15,422
Less Operating Expenses−$5,964
Net Operating Income$9,458
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Factor in financing to see your actual return on invested capital in Norman.
$
$60,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-6.87%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$67,200
$60,000 down + $7,200 closing
Monthly Mortgage
$1,173
on $180K loan
Monthly Cash Flow
$-384
after all expenses
Annual Cash Flow
$-4,614
before taxes
Cash Flow Breakdown
Monthly Rent$1,360
Less Expenses−$571
Less Mortgage−$1,173
Monthly Cash Flow$-384
Is Norman a Good Place to Invest in Rental Property?
Norman, OK has a population of 130,000 and has been growing at 1% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $240,000 paired with median rents of $1,360/mo produces an estimated cap rate of 4.77%.
Property taxes at 0.86% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.5% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 4.6x, homes cost about 4.6 times the local median income of $52,400. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Norman presents moderate opportunities. Cap rates near 4.77% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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